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South Plaza's Rising Home Values and Shifting Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
South Plaza, a vibrant neighborhood in Kansas City, Missouri, has experienced significant changes in its housing market over the past decade. This area, known for its mix of residential and commercial spaces, has seen a notable shift in homeownership rates and substantial increases in property values. From 2013 to 2022, South Plaza witnessed a gradual decline in homeownership rates. The percentage of residents owning homes decreased from 48% in 2013 to 44% in 2022. This decline coincided with a dramatic rise in average home prices, which increased by 45% from $269,740 in 2013 to $390,992 in 2022. The relationship between federal interest rates and homeownership rates in South Plaza is evident. Homeownership rates remained relatively stable between 46-48% from 2013 to 2016 when interest rates were low (0.11% to 0.40%). However, as interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 44%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
Conversely, the percentage of renters in South Plaza increased from 52% in 2013 to 56% in 2022. This rise in the renter population coincided with an increase in average rent prices, which grew by 19% from $1,136 in 2013 to $1,350 in 2022. The growth in both renter percentage and rent prices suggests a strong demand for rental properties in the area, possibly driven by the neighborhood's desirability and the challenges of homeownership due to rising property values.
Recent data shows that the average home price in South Plaza continued to rise, reaching $403,637 in 2023 and $418,012 in 2024, a further 7% increase from 2022 to 2024. This price growth occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. This suggests a robust demand for homes in South Plaza, even in the face of potentially higher borrowing costs.
Predictive models forecast that average home prices in South Plaza will continue to rise, potentially reaching around $480,000 by 2029. This projection is based on the consistent upward trend observed over the past decade and the neighborhood's enduring appeal. For rent prices, the forecast suggests a continued increase, potentially reaching an average of about $1,600 per month by 2029, assuming the trend of the past decade persists.
In conclusion, South Plaza has transitioned towards a more renter-dominated market over the past decade, with declining homeownership rates and rising property values. The neighborhood has demonstrated resilience in its housing market, with home prices continuing to climb even amidst rising interest rates. These trends reflect South Plaza's attractiveness as a residential area and suggest ongoing demand for both rental and owned properties in the coming years.
